The virtual currency market has experienced huge fluctuations recently, and hundreds of thousands of investors are facing the risk of liquidation.
analyze:
1.1 Bitcoin and Ethereum
Bitcoin (BTC):
Mining difficulty adjustment: The Bitcoin network has recently undergone multiple mining difficulty adjustments, which have affected miners’ income and the security of the network. This change has had an important impact on the balance of market supply and demand.
Institutional investor trends: The accumulation or selling behavior of some institutional investors has had a significant impact on the market. For example, Tesla’s Bitcoin position dynamics have always been the focus of market attention.
Ethereum (ETH):
ETH 2.0 advancement: The progress of Ethereum 2.0 upgrade is crucial to the long-term value of ETH. Recent progress shows that the introduction of PoS (Proof of Stake) mechanism will greatly improve the efficiency and security of the Ethereum network.
Application of DeFi and NFT: As the main platform for the DeFi and NFT markets, the expansion of Ethereum’s application scenarios has had a positive impact on the demand for ETH.
1.2 Fundamental analysis of other mainstream currencies
SOL Coin:
Technological Innovation: Solana (SOL) is known for its high-performance and low-cost transaction processing capabilities, attracting a large number of developers and projects.
Ecosystem: The rapid expansion of the Solana ecosystem, including the launch of new DApps and protocols, provides momentum for the long-term growth of the SOL coin.
BNX Coin:
Project progress: The BNX project has made significant progress in technology research and development and market promotion, which has enhanced the market's confidence in its future development.
Partnerships: Collaboration with other blockchain projects and traditional financial institutions has enhanced BNX’s application scenarios and market recognition.
2. Reasons for market turmoil
2.1 Macroeconomic factors
Global economic environment: Global economic uncertainty and increased inflationary pressures have led to changes in investors' risk appetite in the cryptocurrency market.
Policy changes: Governments’ regulatory policies on the cryptocurrency market change frequently, which has a significant impact on market sentiment.
2.2 Internal Market Factors
Market manipulation: Market manipulation by large or institutional investors has exacerbated market volatility. The recent surge and plunge may be related to the manipulation of these large funds.
Liquidity crisis: Some exchanges and projects have liquidity problems, causing market panic and leading to sharp price fluctuations.
